The first case of FAS Presidium investigated as an in-house appeal was legitimate

Court once again confirmed a violation leading to elimination of competition on the market of integrated lift services in Ufa

Bashkortostan OFAS found that the Ministry of Housing & Utility Services of the Republic of Bashkortostan, “UfaLift” Ltd., “Bashkiria Lift Company” Ltd. (“BLK” Ltd.) and Housing Departments (Managing Companies)* violated Part 4 Article 16 of the Federal Law “On Protection of Competition”. In the opinion of the regional antimonopoly body, such actions push an economic entity from themarket of integrated lift services in Ufa.

The Ministry held a meeting, where it invited the managing companies and “Ufa Lift Plus” Ltd. Instructions were given to transfer lift servicing operations in Ufa back to “BLK” Ltd. and terminate operations of “Ufa Lift Plus” Ltd.

Then the managing companies sent letters to “Ufa Lift Plus” Ltd. to terminate contractual relations.

Therefore, the authorities intervenes the competitive environment on the market of integrated lift services in Ufa, aimed at removing an economic entity from the market.

With the “forth antimonopoly body” coming into force, FAS Central Office received the powers to review decisions and determinations issued by regional antimonopoly bodies should any complaints regarding OFAS actions be received. “Bashkiria Lift Company” Ltd. took advantage of this right.

In spring 2016, FAS Presidium considered to company’s complaint. The FAS collegial body also heard an independent opinion given by representatives of the Association of Antimonopoly Experts.

As Deputy Head of FAS, Sergey Puzyrevskiy pointed out, FAS Presidium dismissed the claim of “Bashkiria Lift Company” Ltd., since the decision of the regional antimonopoly body did not breach the uniformed practice of antimonopoly enforcement. Thus, the FAS collegial body did not find the grounds to abolish it.

The authorities and economic entities that had been found to violate the Federal Law “On Protection of Competition”, filed a lawsuit challenging the decision of the regional antimonopoly body. The First Court Instance allowed the claim; however, the Appeal and Cassation Courts confirmed legitimacy of the decision made by Bashkortostan OFAS.

* “Housing & Utility Department, Kirov District, Ufa City, the Republic of Bashkortostan” OJSC; “Sipailovsky Housing & Utility Department, Oktyabrsky District, Ufa City, the Republic of Bashkortostan” OJSC; “Housing & Utility Department, Kalininsky District, Ufa City, the Republic of Bashkortostan” OJSC